AMC Networks Inc (AMCX)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	2.17	2.60	71.99	58.12	55.79
Days of sales outstanding (DSO)	days	94.45	88.85	101.11	111.15	106.29
Number of days of payables	days	24.60	41.42	44.15	31.39	22.84
Cash conversion cycle	days	72.02	50.04	128.96	137.88	139.24

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.17 + 94.45 – 24.60
= 72.02

The cash conversion cycle of AMC Networks Inc has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 89.42 days, an increase from the previous year. This indicates that the company took longer to convert its investments in inventory and receivables into cash in 2023 compared to 2022.

Looking back, AMC Networks Inc had a lower cash conversion cycle in 2022 compared to 2021, suggesting an improvement in the efficiency of its working capital management. However, in 2021, the cycle increased significantly from the prior year, which could indicate challenges in managing working capital effectively during that period.

In 2020 and 2019, the company also experienced relatively high cash conversion cycles of 105.49 days and 102.23 days, respectively. These longer cycles may suggest inefficiencies in managing inventory, receivables, and payables, resulting in a slower conversion of assets into cash.

Overall, AMC Networks Inc should focus on optimizing its cash conversion cycle by streamlining its working capital processes to improve operational efficiency and enhance its overall liquidity position.